Labor boosts bulk billing with $8.5bn election pledge

Labor has announced an $8.5bn election sweetener that promises to boost the bulk-billing rate to 90 per cent of GPs by 2030. Here’s the pledge.

A re-elected Anthony Albanese will make the single biggest investment in Medicare since his party created the policy four decades ago, pouring in $8.5bn to guarantee cheaper GP visits for every Australian and an ambitious 90 per cent bulk-billing rate in five years.

Days after the first interest rate cut in four years, and weeks after declaring the worst of inflation “is behind us”, Mr Albanese will announce he’s spending big, unveiling the largest GP training program in Australian history — promising to deliver 2000 new doctors every year by 2028 and a $30,000 incentive to lure trainee doctors away from state hospitals and into the federal GP system.

In Tasmania on Sunday, Mr Albanese will rally party faithful with the promise of tripling the bulk-billing incentive for every single patient and giving GP clinics that bulk-bill all their patients a 12.5 per cent bonus payment.

The mega cash splash — before the trigger is pulled on the campaign and just days after the desperately needed interest rate reduction — will leave Labor open to criticism the spend is inflationary.

The $8.5bn funding comes on the heels of the another health announcement, $573m for a spate of women’s health investments rolling in both before and after the upcoming election.

Prime Minister Anthony Albanese will pledge the single biggest investment in Medicare since its inception. Picture: Scott Gelston

The government will maintain the majority of the new cash was factored in the Mid-Year Economic and Fiscal Outlook (MYEFO) but is leaving the details on how Australians will pay for the funding injection scant until the next budget update.

A bulk-billing incentive payment was first introduced by Labor in November 2023 but only applied to pensioners, concession card-holders and children under 16.

Anthony Albanese and partner Jodie Haydon in Tasmania on Saturday. Picture: Scott Gelston

The historic expansion kicks the door open for an election fought on health — Labor’s sweet spot — with the Prime Minister revving up his party’s infamous Mediscare campaign by vowing to “protect” Medicare against Opposition Leader Peter Dutton.

Making the announcement, the government declared that “Peter Dutton will cut Medicare again, just like he did last time”.

“Labor built Medicare, we will protect it and improve it for all Australians,” Mr Albanese said.

“This is a policy that lifts up our entire nation and ensures no one is held back, and no one is left behind.”

Health Minister Mark Butler ramped up the attack on the opposition, declaring “Peter Dutton tried to end bulk-billing.”

“Australia’s doctors voted Peter Dutton the worst health minister in Medicare history for a reason,” he said.

“There is no question that when it comes to Medicare, you’ll be worse off under Dutton.

The new bulk-billing incentive will be available to every kind of GP practice, a policy Labor claims will save Australians $859m a year in gap costs in the next five years.

They also claim the policy will mean nine of 10 GP visits will be bulk-billed at 4800 clinics nationally by 2030.

A recent report by Cleanbill showed the national bulk-billing rate for new adult patients with no concessions was now sitting at 20.7 per cent.

Therese Callaghan with her daughters Kai, 2, and Alarie, 4, at Nurragingy Reserve. Picture: Tom Parrish

In a direct attack on Peter Dutton, Labor said its new funding will replace the $8.3bn that the Australian Medical Association says was lost when the Medicare rebate was frozen.

The freeze was first introduced by Labor as a temporary measure in 2013 but continued under the Coalition government from 2014 before being lifted in phases from 2017 until 2020.

If the Albanese government is re-elected at the next federal election — due by May — Labor ill introduce the policy by November 1.

A metropolitan Sydney GP seeing a patient for a standard consultation currently gets $42.85 for the visit, but under the new policy that will jump to $69.56, while a long consultation will go from $82.90 to $114.61 per patient.

A GP in a small rural town currently under the new policy will jump 98 per cent to $84.86 for a standard consult.

Marsden Park mum-of-two Therese Callaghan said she would support any measures to help more people access bulk-billed GPs.

“This would … reduce the burden on our hospitals,” she said.

“We don’t want to end up with a medical system similar to the US, it’s actually a big fear that my children won’t have access to good healthcare any more if more GPs stop bulk-billing.”

Originally published as Labor boosts bulk billing with $8.5bn election pledge